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January 09, 2007

Setback for Ariad in Dispute with Amgen

By Robert Dailey --

Last Friday the Federal Circuit refused Ariad's request
to hear its appeal of a pre-trial ruling in its district court litigation with
Amgen. In mid-2006, Amgen filed a
declaratory judgment action against Ariad in the U.S. District Court for the
District of Delaware.

Ariad responded by asking Judge Kent Jordan to dismiss
the suit for (i) failure to demonstrate the existence of an actual controversy
under the declaratory judgment standards, and (ii) for failure to join Harvard
and MIT as indispensable parties. Judge
Jordan denied Ariad's motion, but certified the issues for appeal. Friday's ruling requires cash-strapped Ariad
to return to district court and proceed with the litigation involving U.S.
Patent No. 6,410,516 (the '516 patent).

Ariad is also embroiled in protracted litigation over the
same patent with Eli Lilly & Co. in the District of Massachusetts. Although Ariad received a favorable jury
verdict last May on the infringement-related issues, the parties are still
awaiting the outcome of an August bench trial on invalidity and inequitable
conduct.

The '516 patent took a huge hit in September, however,
when the USPTO invalidated 160 of its 203 claims in a reexamination
proceeding. Ariad is in the process of responding
to the USPTO's findings.

Amgen Inc. v. Ariad Pharms., No. 1:06-cv-00259 (D. Del.).

Ariad Pharms. v. Eli Lilly & Co., No.
1:02-cv-11280-RWZ (D. Mass.).

Robert Dailey, Ph.D., is a physical chemist and a third-year law
student at the University of North Carolina at Chapel Hill. Dr. Dailey
was a member of MBHB's 2006 class of summer associates.